Understanding Credit Score Differences

Understanding Credit Score Differences

There are few numbers in life that matter as much to your financial outlook and well-being as your credit score. However, confusion is the norm for consumers when it comes to this important financial gauge.

The History of Credit Scores

Prior to the creation of standardized credit scores, lenders and loan officers would often develop their own "score card" to assess the risk of lending to a particular borrower. This score card could vary drastically from one lender to the next. The major issue with this original method was that it was based on a loan officer's ability to judge risk, rather than a common set of rules and specific calculations.

So, in the 1980's, the Fair Isaac Corporation set up the first general purpose credit scoring system based on credit bureau information in order to help remove the inherent inconsistencies that arose from having each lender perform their own credit diagnostics. It has since become known as the FICO score and the algorithm has been widely adopted by America's largest credit reporting agencies.

Why would my score differ between credit agencies?

The three major credit bureaus are Equifax, Experian and TransUnion. If you're seeing different scores from each bureau, there could be a few reasons for this. Here are some of the most common ones.

  1. The scores are from different dates. Since your score can change at any time, it's important to compare credit scores from the same date.
  2. The scores were calculated using different scoring models. We'll get into this in the next section, but it's important to know that there are many scoring models out there. When you compare scores among bureaus, make sure they are calculated using the same model. Even with the same model, your scores could vary because each bureau may store information or calculate the score a little differently.
  3. The information in your credit reports varies among credit bureaus. This actually isn't uncommon. Some lenders report to all three credit bureaus, but others report to just two or one or none at all. The information in your credit reports may also be updated at different times at each bureau. In other words, one credit bureau may be missing an account or other information that either helps or hinders your score.

Of course, it's also a good idea to check your credit reports for errors periodically since an error could affect your score. You can check your TransUnion and Equifax credit reports for free on Credit Karma and your Experian report on www.AnnualCreditReport.com.

Why would my score differ between the same credit agency?

Like a thumbprint, no credit score model is exactly the same. Each credit score model has a slightly different formula for weighing credit score factors. The credit bureau can use dozens of different credit score models based on the requirements of different lenders. As an example, a mortgage lender may use a different scoring model than an auto lender because they each place importance on different factors.

Though your scores may vary, they're all based on information in your credit reports. So focusing on what's in your reports could help you build your credit overall.

Other Available Scores

While FICO is the most famous, there are several other versions and providers of credit scores, such as VantageScore, NextGen, BEACON and EMPIRICA. Some scores are directly developed by credit bureaus, while others are developed by outside companies.

Is there a "best score"?

In a word, no. In order to protect revenues, credit reporting agencies will often position their scores as the best or the most predictive. In reality, all scores must adhere to similar guidelines to be truly predictive, regardless of the final output number. All credit scores are built from the same base set of data and statistical procedures.

Like many products and services in the marketplace, there are a plethora of different options for you (and the businesses that serve you) to choose from, simply because every buyer is different. Based on cost and effectiveness in each buying situation, there are credit scores for sale to satisfy each customer.

Score Ranges

Just as a point of reference, it may be important for you to know what the score ranges are for each of the major scoring systems. The higher your score the better, as it is a general gauge of your overall creditworthiness in the eyes of lenders.

  • FICO Score: 300 -850
  • Score from Experian: 330-830
  • Score from Equifax: 300-850
  • Score from TransUnion: 300-850
  • VantageScore 3.0: 300-850

Bottom Line

Because there are hundreds of credit scores that measure many different probabilities, consumers generally do not need to be overly concerned with the type of score or even their number. It's also important to note that your credit score is a variable which can change every time your credit report changes. For these reasons, monitoring changes within a single score over time can be a better way to gauge your overall credit health.

These complicated facets of credit scores are exactly why we developed Credit Karma. By keeping the bureau and credit scoring model consistent, we are hoping to provide consumers with a single, easier-to-follow point of reference on their credit health. Best of all, it's always free to check your credit score with us. In this way, you can access your score as often as you want and always have a consistent baseline to better understand how your score is changing.

Disclaimer: All information posted to this site was accurate at the time of its initial publication. Efforts have been made to keep the content up to date and accurate. However, Credit Karma does not make any guarantees about the accuracy or completeness of the information provided. For complete details of any products mentioned, visit bank or issuer website.

All Comments

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8 Contributions
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The thing that baffles me is that this is a free service that is intended to help you make better credit decisions. People are complaining it doesn't have all 3 scores, that it isnt 100% accurate etc... people ITS FREE! What other site is free and lets you update your score everyday and alerts you to inquiries etc? If you want accuracy pay for a service..even then your score could change in a minute!

Reply by
mulberrygal

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Try credit sesame. They are free and accurate. I just got a new car and they ran my credit and it compared exactly with credit sesame. Credit karma was wayyyyyy off.

Reply by
waa57att

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Free that is not accurate is no help

Reply by
darlenam

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You idiot

Reply by
Kingja55

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Nothing is free my friend. Ck makes their money by selling your info to creditors. You may notice an influx of calls or letters from debts from 10 or more years ago shortly after joining. No big deal really, but I would hate for people to go around thinking ck is a group of humanitarians just trying to provide folks with a free service.

Reply by
CreditCruiser

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Also what I have found out is that this free site is generated off the Transunion report and that is usually the lowest of the three score agencies so if you have a good score here then you can be sure that you are doing okay.  And again it is free. 

Reply by
Kenburden

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Enter Your The entire credit system is fake.  They are just making opportunity to create commerce.  So useless.

Reply by
Kenburden

3 Contributions
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Enter Your Replying just want some easy system to correct errors.  I've been trying to make a correct for two years with no success and it a truly an error.  Hopeless credit system.

Reply by
dinahleigh

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Enter Your Reply Agree 

Reply by
Tashinawin

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What I find most helpful about Credit Karma is the access to information.  Personally, I don't find their Vantage Scores that helpful, to be honest.  But until credit rating is standardized across the board, all the financial institutions who offer financial credit-worthiness products will be vying to be "the" go-to score provider.  Obviously Credit Karma is supported by the Vantage consortium who hopes to become that across-the-board "gold standard."  SInce they represent three major providers, that's probably not a bad strategy.

Don't throw out the baby with the bathwater.  It's free.  It's got some good information on the site besides credit scores if you're willing to use it.

Reply by
oldsarge41

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Yes, your score can change quickly and have a wide range when all three agencies are compared. However when the difference between Credit Karma and the reporting agency is -30+ points, that is not a change, that is a substantial difference.

Here is my 2 experience, that baffled me Friday, 3/13/2014.

The FICO score is the most important info when attempting to refi mortgage, auto loan and so forth.  I  am attempting to refi my mortgage,  and the bank I am working with specifically uses only one of the credit bureau reporting agencies. I signed on to Credit Karma and my score was a number that was acceptable to the bank .I immediately contacted the bank and the application process was started. When the bank official checked my score, the real time number that was pulled up directly from the reporting agency was 30+ points lower that the score that was shown on Credit Karma. Granted, Credit Karma indicated that numbers are update every three days. So yes my score could have decreased and I would inquiry as to why, but -30 points higher that the  score indicated by Credit Karma? Couldn't happen, unless there was some untoward activity on my account. 

I believe this to be the credit bureau not releasing correct fico to Credit Karma, simply because they would no longer be able to demand money from anyone wanting their fico score at any other time than the mandatory reporting period of once per year.

I appreciate that Credit Karma offers this free access to my credit reports, but without the correct fico score,  all I can do is read my credit report(s) and if I find a discrepancy, I can call the reporting credit agency.  In their advertising, as seen on several TV commercials and on the net,  Credit Karma should state “ free inaccurate  credit score” or what we think is your credit score.” Not prop your feet up on the desk in bank officials office . I would be embarassed when the banker official giggled and then laughed me out of his office.

Reply by
amax

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Enter Your Credit Sesame is similar but it covers Experian.  I understand what you are saying about free.  True.  However, the change to Vantage score oppose to Fico is a concern.  Fico is the most widely used despite what Credit Karma stated.  So for some of the individuals to have concerns is reasonable.  The fact is Vantage scores are always lower than your Fico. Also with them including Equifax on here is good.  However equifax have many incosistancies and problems.  At one time my score for Eqifax was 60 point difference though bot credit reports Trans and Eq. matched exactly.  The fico score is far more important to watch.  Free? yes.  Accurate? Maybe.  People monitoring their credit want accuracy.  No one asked Credit Karma to offer free monitorin.  Thety chose too.  Just because it is free, doesn't mean a person should not question something in a forum.  That is what they are designed for.

Reply by
cascadian12

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Credit scores, including the FICO score, SHOULD BE FREE! The credit bureaus develop them using YOUR data as a convenience to THEMSELVES! IF they're going to use them to make credit decisions, the data and analysis should be provided to the owners of the data. In fact, I think they should be publicly funded through our tax dollars and benefit the people.

And, no, living without credit or credit cards is not an option in this society. My health care provider won't even accept checks (which are no guarantee of solvency), so credit cards are requested.

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Unreal!!! I purchase my credit reports every other month. Since the last reports were pulled there have been no changes except the on-time payments, and my score still drops 14 points. I had three different people look at them. The F'in' reports are identical!!!! 

I think it's time to petetion congress for changes:

1.  Consumers should be able to get thier indididual credit scores and reports at least monthly at no charge.

2.  There needs to be more costly punative damages for credit reporting agencies, and creditors for not correcting, or producing complete documentation which substantiates their claim(s). (in a lot of cases, creditors/collection agencies have no obligation to verify the information they report unless the request comes from the credit bureau. And, then the creditor only has to send a confirmation to credit bureau that the debt exists.(no proof, just confirmation).

3.  When an individual's credit score negatively changes, the credit bureau should have to explain how/why the credit score changed.

It's my beleif that these 3 changes will do more to benefit consumers than any adverse effect it may have on creditors or credit bureaus. I look forward to hearing you thoughts.

3. 

Reply by
sak14

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Until when and if people will take the time to call their congresspersons and be very assertive, nothing will change because the hands that hold the money are in their pockets so it is up to us!!!

Reply by
UPSIEDAISY

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Petetion congress?????  Really?????  Then we could all complain that our Government interfers too much in our daily lives.   Stop and Think, Folks!!

Reply by
feetsforwater

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Petitioning Congress to do something.  With all due respect I have seen them do absolutely nothing for so long.  They are a joke.  If it would do any good I would gladly sign on and do it. 

Reply by
vevoom

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Enter Your ReplyAmen

Reply by
Mamajo69

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Enter Your Reply  When I saw my credit scores from Credit Karma and it was so unreal because it was so different points.  My score dropped and I was appalled.  I had almost to 700 and now the new one is about 60 points less than I had previously.  I pay my bills right on dot.  Never miss it.  Now something is fishy on this one.

Reply by
AZFossil

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As long as Congress operates on the "Money in my Pocket First" princpal, NOTHING will get done.

I am sorry to say that this what I see, Congress has sold itself to the highest bidder, and the hell with the people who voted for them. This is no longer the country that I swore an oath to defend, the country that I grew up in, the country that I was so proud of.

Reply by
VictoriaEvans23

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ESPECIALLY SINCE OUR INFORMATION IS BEING "HACKED" BY PLACES OF BUSINESS THAT STOCK ESSENTIALS FOR US TO LIVE .. i.e., TARGET. It's not like we could be more careful who we trust with our hard earned money. It is a unfair practice to hold our livelyhood attached to a number that we have no control over. Companies including debt collectors have very little regulations when reporting payments. I have 3 mistakes that need to be corrected so I must take time out of my busy schedule to dispute the reports. This shouldn't be taken lightly when hard working families apply for a mortgage and get screwed over by higher interest rates that can potentially affect them throughout a 30 year timespan. Having to pay $150 extra a month because a shady small print contract that required a written letter to cancel a membership wasn't brought to our attention when the final payment was made after the annual timeframe!

Reply by
TheyreOutToGetMe

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I agree with your statements - in fact, the most frustrating problem I see is that the scores just change without anything material being the cause.  If I missed a payment - yes I should go down 28 points, maybe, if that's the cost.  But it shouldn't just randomly drop 28 points "because reasons".

Reply by
cascadian12

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GREAT suggestions! Thank you!

Reply by
farout68

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This is because it's a way for those rich people connected with lending their stinking money to get richer!  Think about it. FICO scores effect your auto insurance, and everything else in your life, even deposits required for owning a house or renting, to getting a job. This is a scam that we are forced into to screw us!

Reply by
grammysandy

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Enter Your ReplyAMEN!!!

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People, Credit Karma is just a tool for you to use. Believe in it or not, it helps you to understand your credit rating and scoring. But don't live by it. It is only a tool, a reference point. The idea is for you to better manage your personal lives and finances. Don't get wrap around the numbers or the points. A few points won't make a difference in you lives. But a denial of credit may affect them. So thank Credit Karma for this site. Use it only as A TOOL! to your advantage in this crazy world.

Reply by
UPSIEDAISY

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GOOD ADVICE.

Reply by
Givesuhe11

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So a "Tool" that's off by 25-50% is a "Reference Point"?? Sorry, that is NOT how TOOLS work... Yeah, credit karma is free and you get what you pay for and usually, 99% of the time, "Free" is Junk... If it walks like a duck etc... credit karma is Junk...

"A few points won't make a difference in you lives. But a denial of credit may affect them"... Seriously?? A few points WILL get you denied, doofus, you contradicted yourself in four words

BTW, eatkimchi, how much do you get paid to post like this... I want a job doing this, (blowing smoke), to supplant my income!!

Reply by
Yos53

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Well said it is just that a tool, and it's free and worth what they offer. 

Reply by
TreLaRain

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I echo that statement: WELL SAID!

Reply by
Arbor1949

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Credit Karma provides hundreds of helpful information articles that the others don't! If you actually read and analyze what you see on the C K site, it's amazing! The numbers are just a simple guide and if read completely and you don't just look at the number you're not getting the benefit of what they are trying to do..... and for free! I fully agree with EatKimchi!

Reply by
DebbieGary1954

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Enter Your Reply

Reply by
reneandarron

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Enter Your ReplyEatkimchi you are right Credit Karma is great. Very helpful and I
I try to check it at least two times a month sometimes more. and I'm very comfortable with them

Reply by
trifectagal

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I would much rather karma (not the good kind) showed me a number that was lower than true than have dealership show me a fifty €\*}<~€\ points lower report.  

Reply by
oldsarge41

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Credit Karma does state that the credit scores may be different between agencies, but no where does the site state that the scores that are posted on the site may be drastically  different than the actual real time credit score mainted by the respective bureaus.

My recent experience

  I accessed Credit Karma and obtained the credit scores for the three agencies. I went to my local bank and sat down with  a bank officer, gave my credit score for the specific agency he requested andf we proceeded to complete a line of credit application, the number he received was 30 points LESS that the Credit Karma score.    I can understand a 3-8 point difference between the reporting agency and Credit Karma, but not 30 can be a tool of embarassment. TV ads show individuals going into banks, etc and demanding perks using their Credit Karma score(s). Credit Karma should advertise like the cell phone companies, with small print on the bottom of the TV screen "Possibly your current scores(s) , but verify with the reporting  before making any financial decision ".

4 Contributions
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transunion is so far behind time. i paid my auto loan off long ago. they say i still owe it! but let me be 8 seconds behind paying a credit card off.............. and it is all over their site. WHAT A BUNCH OF CRAP!

THEY SHOULD BE PUT OUT OF BUSINESS!

Reply by
darlenam

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Businesses do not always report to all 3 agencies. It is not Transunion fault. Your loan company does not report to them

Reply by
easymoney76

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Blame the fiance company who you financed the car through. Transunion can only report on what they receive. I had and stil have this issue with Amerifirst home improvement loan. They stopped reporting my payments to Transunion in Jan, 2014 because of they say a new reporting vendor they hired and software changes. June of 2014 still no reporting of payments. I filed a dispute with Transunion against Amerifirst and my balance was update within 24 hours. I just paid this loan off Nov !st still showing a balance if it's not corrected by the 15th of Nov. I'll filed another dispute with Transunion and have it corrected. So before you lay blame make sure you know who's to blame.

Reply by
kziemke

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You can dispute it on the Transunion website so they will change that. These agencies handle millions of accounts. It's up to us to keep up with our own credit reports.  Disputing wrong information is one way to do that. 

Reply by
farout68

5 Contributions
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Enter Your ReplyCredit Karma is good, but Trans Union is VERY SELDOM USED! The two others swing real weight, and it is near impossible to get things changed!!! When my wife and and I bought two vehicles last year the dealers slamed our credit with searches for financing, about 12 each time. Our credit FICo scored dumped to 630 that is so unfair to consider each inqurie as a point against our credit! I hate FICO!!! This is a scam to make  auto insurance, and many outer places charge more intrest. This is a real scam to allow these credit companies charge more for getting your FICO score and watch your credit for a charge. What a rip off !!!

Reply by
vindicator

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you ever think maybe it not the credit burea slacking...but your finance company?...if you payed off the loan...they probably just don't care to send your info ....lets be honest alot of companies slack on sending the positive transactions

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I can appreciate this is a free service, and I'll be the first to say I have used this service faithfully for the last 3 years or so.  I think its great we can access it without fear of gimmicky membership trials offered by the 3 bureaus.  

I would be remiss if I didn't express my disappointment in the shift to Vantage scores.  I can also get my free scores using a combination of different credit card accounts that I have, and they all offer my free FICO score.  What used to be great about Credit Karma was that I could view by Transunion FICO score for free. Now I can see my TU and Equifax score for free, but because its a Vantage score, I only visit this site to see if something changes, but not for any other information.  What used to be an every day almanac of my credit information has become a weather vane I glance at every once in a while.  Basically I use it as a queue to go check other sites to find out what my FICO score is.

Thanks to the builders of this site for providing a free service like this, but please consider switching back to FICO.  Its a more meaningful score to consumers.  No one I talk to uses my Vantage score when I apply for credit.  Thanks for listening.

Credit Karma Team
Top Contributor
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Hi sburns7650,

Thank you for your feedback.

Credit Karma has never provided a FICO score. We previously provided the TransUnion New Account score. 

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Credit Karmas Transunion score for me has been the same when I pulled a Transunion report. I also have Life Lock which provides all three scores using Transunion as the main one. I have found them and Credit Karma consistent in their reports. As I understand the Credit card companies and others report your debt on the first of each month. That is why I pay my cards down before then and see my score rise. By taking your total credit card combined and adding them you then can divide that by your total credit limits. Example: One card has $5000 limit and another has $1500 limit which would give you $6500 total. Your debt on both cards are at $4500.

By taking $4500 divided by $6500 = 69% of your card usage. I think the credit agencies favor in a score best for those that are below 30%. Credit card have the worse effect on score. That could raise you back up about 10 points or more. I love Credit Karma and appreciate their services. I took up one of their offers on a Truck payment and lowered it from 6.9% to 2.98% which is saving me a bundle. Life insurance was the same. That offer some great services considering there was nothing back in the 70s or even 90s that could help some one moniter their credit.

Reply by
gran2449

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How did you come up with $4500? That doesn't make sense to me?

Reply by
DeepDarkStar

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"Credit card have the worst effect on score". Correct and Incorrect.

Credit cards are basically needed to start your credit score at a good level. I knew people who didn't have credit cards. Their score was terrible. Banks denied loans.

I have 4 credit cards. My score is good because I have at least 2 with less than 30% debt and never make late mayments. I have small and large limits. I also have an active unsecured loan, with college debt.

Remember not to get into the trap of credit cards- spending too much and not paying it off. I ran into that situation (I was almost at my limits) when I graduated college. It took at least 6 months to slice my credit card debt back down and improve my score.

Reply by
patelzeenat

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I see you use LifeLock. Is this a good service and worth sepnding montly fees on?

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So my score was 794,  Then I sold my house and paid off the mortgage and also paid off a car loan and the score drops to 780.  This is such a scam and a joke to the American consumer who is fiscally conservative.  Shouldn't paying off loans increase your score? 

Reply by
ikhoseo

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When an account such as a auto loan or mortgage is paid off, the account is then closed. While the account was open, you had a limit and open balance. For example, if you had a $30k auto loan, and a had only a few payments left, you are utilizing less than 10% which will give you a higher score. Once the loan is paid, it is closed and your available credit decreases...hence the lower score. However, this is temporary and your score will increase again over time.

Reply by
hatson

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I heard ya ... I've paid off two mortagages and haven't carry a car loan ... the more liquid I become the worse the score.... I always pay 100%of my credit cards monthly and that doesn't seem to help....

Reply by
ddiaz1983

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It is a scam.  Welcome to reality.

Reply by
matthewbrahm

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The reason why is because you closed two accounts so quickly.  having those acconts open and making monthly payments is what increases your score.  I know it doesn't make a bunch of sense, but I guess the way they see it is something like this: Well, maybe the person just came up on a bunch of money, and tried to pay off as much as they could." I guess they think it shows lack of responsibility.  Stupid, I know.

Reply by
creditcaddy

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I am starting to think that having all these credit reporting acgencies out there is a scam. None of the numbers match. I think they use scare tactics to get consumers to go into more debt. I am being ****ed for being fiscally conservative. I have no debt and have plenty of savings and a poor credit score. I can't any credit because I don't have any credit. I refuse to pay high credit cards fees for a better credit score. I was forced to take a small secured loan at my local creit union to help raise it.

Reply by
Synders

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That DOES seem logical, doesnt it? All the credit agencies want is to see you pay off each payment on time and keep the balance of all credit cards one-third or below. It's like - if you were going to lend someone money, but not sure if they'll pay you back. So you find a place to see what a good history they have with paying people back. It's weird, but the credit card companies love to nickel-and-dime you with fees. Like a bank does. So if you paid off your car they can't charge you interest on the loan anymore. They can't nickel-and-dime you anymore. Your credit is fine. You have to think like a credit card company. Banks are the same way. If you overdraw on your account by accident, they don't care. They don't want to hear excuses.  If you deal with a credit union, they're your friends. They understand that things happen unexpectedly. I usually tell them right away that I'm sorry but I'll get it taken care of right away and they usually remove the fee...credit card companies and banks are crooks to me.

Reply by
cherished925

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you would think it does but it dosen't because now your revolving credit is gone

Reply by
kenhudak

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Yep. The credit score doesn't have anything to do with you personally, rather, think of it as a measure of how profitable you are to the debt slave establishment. Banks don't really want to deal with fiscally conservative people like yourself because they miss out on overdraft fees and monthly running CC balances that really rack up the interest, etc.

Reply by
roybigb

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Enter Your Repl          Dont feel bad Its all a shame , I went to try and get some furnitue , and was denied with a 645 score and a good job.And one car. my wife works part time with a 620 score and [2] cars in her name and was approved for 3400.00 plus 2 days later my score went down 45 points REALLY ....

Reply by
hdtv571

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Exactly why you should think in terms of WEALTH, not credit score.

Reply by
PiaCat

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I"m puzzled by TransUnion.  As far as I can tell, nothing has changed since the last Credit Karma report, yet my score was lowered 14 points by TU

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Bottom line.... FICO IS THE ONE AND ONLY SCORE USED BY ALL LENDERS across the USA when evaluating you for credit. Name one bank that uses Vantage???? please!! Name one!

Credit Karma Team
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Hi Djrocc7,

This is simply not true. Many lenders use multiple score models, and many use their own proprietary models. Banks do not typically publicize the score model they use to make a decision. Even if they use a FICO score, there are 50+ different FICO models to choose from. 

Top Contributor

Reply by
Floridabiker777

51 Contributions
257 People Helped

Enter Your Reply  There are 49 Fico scores.  So trying to know which one (if any) the company is using would be very difficult.  I come here to see not just my Vantage scores but to check on my reports.  I find that these new score are very close to the original Fico scores.  And it's free not to mention updated on a weekly basis.  Big help for me since I went on an app spree in November & am waiting on my scores to go back up.  I'm trying to get as close to 850 as possible.  Their suggestion was to get good popular cards with decent limits to raise my score.  So now we will see where that leads.  I'm thinking 18 months before I see a really good improvement.

1 Contribution
6 People Helped

Helpful to 6 out of 6 people

In my experience Equifax always has the lowest FICO score. My 4 credit cards all provide a FICO score and I also get it from Credit Sesame. No 2 accounts have ever shown the same score. As of today, March 4, my 4 credit cards list my Fico score as 705, 772, 775 and 794. Credit Sesame has my FICO as 814 and here at Credit Karma it is 798 (Transunion) and 709 (Eqifax).

I get my free annual credit reports every year from the 3 reporting agencies and the 3 reports all contain the same information. I have given up trying to figure out how a FICO score is calculated. A number that is so important and that can carry so much weight in a persons life should have a simple mathematical formula that the consumer can figure out, manage and follow.

2 Contributions
38 People Helped

Helpful to 38 out of 52 people

Getting penalized for not having debt is a no,no! It's just not right that you HAVE to HAVE some kind of history of debt payment to get good rates. I so bad want to pay cash for everything (working on that) and not worry about all this doodoo! Someone needs to put a cattle prod to the credit agencies to do an accurate job at reporting. And a faster job on taking off things that are paid off and don't need to be on record. They're sure quick to add the negative to your list. How about we all barter---------?

Reply by
silent357

1 Contribution
20 People Helped
Helpful to 20 out of 22 people

In order to get credit, you would have to show you can pay on/ off a loan or credit card. It's that simple. If you have no debt, how are agencies/creditors supposed to know if you can handle paying on a loan? Just my opinion.

Reply by
Tashinawin

8 Contributions
138 People Helped
Helpful to 3 out of 4 people

You are right It's NOT fair.  And although it may not be good for consumers, that mode IS good for the credit card companies and banks who loan out the money.  If you look at the fine print on any credit card agreement, it basically says they can change anything they want at anytime.  If you don't like it, your option is to close the account and pay off the remaining balance. Which, by the way would make your credit rating go down for a while.

They want to to carry sustainable balances and to continue to pay them off over a very, very long time so they can make more money off of you.  But not TOO much debt relative to your credit limits. Otherwise, you might claim bankruptcy and they lose their money.  But don't worry.  Credit card companies and the banks that offer them  NEVER lose money overall on their credit card business.  Which is fine by me.  I just wish they weren't QUITE so predatory.

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